H.R. 8439 — Commission on Natural Disaster Risk Management and Insurance Act

This section establishes a 26-member commission with expertise in insurance, reinsurance, risk management, disaster response, emergency management, public finance, structural engineering, building standards, land use planning, natural disasters, financial markets, housing, urban development, and related fields, appointed as follows: (1) 8 members by Senate and House leaders (2 each by majority leader, minority leader, Speaker, and House minority leader); (2) 8 members by Senate Banking and House Financial Services chairs and ranking members (2 each); (3) 8 members by House Transportation and Infrastructure and Senate Homeland Security and Governmental Affairs chairs and ranking members (2 each); and (4) 2 state insurance commissioners selected by state commissioners (not from the same political party). Members under (a)(1)-(3) may not be federal or state officers or employees; appointments occur within 30 days of enactment for the commission's duration, with vacancies filled identically; members serve without pay; a majority constitutes a quorum (lesser number for hearings), with recommendations and reports requiring majority approval of all members; the commission elects its chairperson by majority vote and meets at the chairperson's or majority's call. This section further authorizes information-sharing agreements with federal, state, local, and tribal entities for relevant nonpublic data (excluding personally identifiable information), preserves privileges and prior confidentiality, and prohibits requiring data sharing or new data collection, while barring gifts absent specific authorization.

This section directs the commission to assess risks posed to the United States by natural disasters—such as wildfires, hurricanes, earthquakes, volcanic eruptions, tsunamis, severe storms, extreme heat, winter storms, flooding, and droughts—and means for mitigating those risks and associated financial costs. The assessment must address (1) current exposure and demographic trends affecting future losses; (2) state, community, and individual mitigation efforts, including land use regulations, building codes, and incentives; (3) property and casualty insurance availability and affordability, including impacts of federal and state laws, state residual markets, and disaster funds; (4) risk-sharing mechanisms such as private insurance, reinsurance, catastrophe bonds, and government programs; (5) financial innovations like parametric insurance; (6) private insurance market capacity; (7) potential national or regional insurance cooperation; (8) any federal role in market stabilization; (9) National Flood Insurance Program take-up; and (10) low-income community needs. This section further requires the commission, in conducting the assessment, to coordinate with state insurance commissioners; consult relevant federal agencies on federal disaster assistance costs; and engage stakeholders including insurers, reinsurers, agents, brokers, and capital market participants focused on alternative risk transfer. This section designates specified executive agencies—including the Federal Emergency Management Agency, U.S. Army Corps of Engineers, National Oceanic and Atmospheric Administration, Department of Housing and Urban Development, Federal Housing Finance Agency, Federal Housing Administration, Department of the Treasury, Department of Agriculture, and Environmental Protection Agency—to advise and consult with the commission, along with any other agency as determined by the commission.

This section directs the Commission to submit to the Senate Committees on Banking, Housing, and Urban Affairs and Homeland Security and Governmental Affairs and the House Committees on Financial Services and Transportation and Infrastructure, not later than two years after the date of enactment of this Act, a report containing (1) a detailed statement of the findings and assessments conducted pursuant to section 4, and (2) recommendations for legislative, regulatory, administrative, or other actions at the federal, state, or local levels to address the issues described in section 4.

This section terminates the Commission 90 days after submission of its report under section 5 and requires all data and information in its possession to be destroyed or returned to the respective owners.